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**Understanding Community Associations**
**Definition:**
A Community Association is a legal entity formed to manage and uphold the interests of property owners within a residential community. It focuses on the protection, enhancement, maintenanc...
A Community Association is a legal entity formed to manage and uphold the interests of property
owners within a residential community. It focuses on the protection, enhancement, maintenance, and
preservation of homes and communal areas.
**Key Features of a Community Association:**
1. **Mandatory Membership:** All property owners must join the association as part of owning
property within the community.
2. **Governing Documents:** The association and its members are governed by specific documents
that outline required actions and obligations.
3. **Assessments:** The association imposes mandatory fees on property owners to fund its operations
and maintenance.
**Lien Definition:**
A lien is a legal claim by the association on a property to ensure payment of debts or obligations. It
safeguards the community's interests by encouraging timely payment.
**Purpose:**
,The purpose of a Community Association is to handle the community, business, and governance
functions. This includes managing and improving residential developments and establishing property
rights and regulations.
**Types of Community Associations:**
1. **Planned Community:** Owners have individual lots or units and share ownership of common
areas.
2. **Condominium:** Owners have individual units and an undivided share of common elements.
3. **Cooperative:** Owners hold stock or membership in a cooperative, with occupancy rights defined
by an agreement.
**Types of Residential Community Associations:**
1. **Master or Umbrella Associations:** Oversee multiple residential associations.
2. **Mixed-Use Developments:** Combine residential, commercial, and/or industrial uses, often
marketed with “live, work, play.”
3. **"55 and Older" Communities:** At least 80% of units must be occupied by individuals aged 55 or
older.
**Legal Sources for Community Associations:**
- **Statutes and Regulations:** Federal, state, and local laws, along with court decisions.
- **Legal Documents:** Specific to each community association, binding both the association and its
members.
- **Lender Requirements:** Standards set by mortgage institutions.
- **Professional Standards:** Guidelines from bodies such as the American Institute of Certified Public
Accountants.
- **Declaration/CC&Rs/Master Deed:** Defines ownership rights and responsibilities.
- **Proprietary Lease/Occupancy Agreement:** Details rights and obligations in cooperatives.
- **Articles of Incorporation:** Establishes the association’s corporate structure.
- **By-Laws:** Regulate administration and management.
- **Resolutions:** Formal decisions by the board.
**Rules and Guidelines:**
- **Purpose:** Establish expected behaviors, limitations, and regulations.
- **Types of Resolutions:** Policy, Administrative, Special, and General.
- **Criteria for Valid Rules:** Must respect rights, be consistent with laws, and be reasonable and
enforceable.
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